Hire employees in Sweden
With Nomad Global Hire PEO / EoR (Employer of Record) services, you can easily hire employees in Sweden, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Sweden
Sweden is a family friendly country with an incredible startup scene
Employer Tax
Estimated at 31.42%
Currency
SEK, Swedish Krona
Available Employee Benefits
Medical insurance, Gym
Employee Tax
From 32% up to 52%
Payroll Frequency
Monthly over 12 payments
Main Universities
Karolinska Institute in Solna, Lund University, Uppsala Universitet
Capital
Stockholm
Population
Circa 10.5 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent Contract
Sweden has long been a hub for successful startups. Legislation make creating a business fairly easy for entrepreneurs, there is a strong talent pool of skilled workers, coupled with innovation and investment. In order to be compliant when hiring globally and especially in Sweden, it is better to do it through an Employer of Record in Sweden (or EOR). NOMAD Global Hire can help you manage this process without putting your business at risk.
Payroll, Benefits & Tax in Sweden
- Average Salary in Sweden is 31,000 SEK per Month (about 3,000 USD)
- Employer Tax in Sweden is estimated at 31.42%
- This includes Pension, Heath insurance,Parental Insurance, Social Contributions and others…
- Employee Tax in Sweden is incremental up to 52%:
- There is a different income tax below and after 598,5000 SEK per annum
- Income Tax can be divided between National Tax and Municipal Tax
- Many factors can impact the tax rate such as the number of children int he family, the location of the house/apartment they live in…
- Overtime payment in Sweden, pass the standard 40 hours a week, is not mandatory, especially if covered by the contractual agreement in place
- Payroll Frequency in Sweden is Monthly over 12 months
- Notice period is depending on the length of service of the employee in the business and is of a minimum of 30 days
- Maternity Leave in Sweden is up to 240 paid days. The Mother has to take 49 days before the birth date and also 49 days after the birth of the child. In case the mother does not want to take the full 240 days, she can transfer those left to the other parent and divide this in several periods. Only 30 days can be taken at the same time by both parents. During this time, leave is paid at by the Social Security at 80% during most of the leave.
- Paternity Leave is also 240 days and follows the same process as Maternity Leave
- Sick Leave is covered for up to 90 days per year. The employer will pay 80% of the salary during the first 14 days then it will be covered by the Social Insurance at a lower percentage.
- Statutory Leave is 25 days per year up in Sweden and runs between April and March of the following year. Employers have to offer employees a 4 weeks vacation period during the summer months (a Family friendly country! 🙂 )
- Bank holidays: there are 13 public holidays in 2023
- Termination can be done for a valid cause in Sweden, see below
The Swedish Labor Code is setting the framework for employment in Sweden. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.
Onboarding and Termination in Sweden
- Probation period are not mandatory under Swedish Labour Law
- Probation period in Sweden however can only be of a maximum of 6 months or 180 days, and therefor cannot be extended further
- Probation period is not possible for Fixed Term Contracts
- You can hire through Fixed Term Contracts, Indefinite / Permanent contract or BtoB contracts
- Employment Contracts can be drafted in English, or in both Swedish and English
- Here a Government link to see Job opportunities in Sweden
- Termination is Sweden is generally a straightforward process but still requires particular care, in order to be compliant. Termination can occur as such:
- By mutual agreement
- By resignation of the employee
- By expiration of contract
- By the employer on grounds of disciplinary dismissal, failure to perform in probation period, workplace behavioral problems, Poor suitability to the job, or other objective grounds.
- It is always advised to reach a Mutual Agreement to validate a Termination in Sweden
- The minimum notice period in Sweden is 30 days (for service of less than 2 years), then 60 days for service of 2 to 4 years, then 90 days for 4 to 6 years…
- Severance payments in Sweden are not mandatory
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An additional Deposit of 1 full month salary cost will be required
Estimated Employer tax costs
Employer Tax in Sweden is estimated around 31.42% (may vary depending on circumstances)
- Pension fund insurance
- Health insurance
- Parental insurance
- Social Tax
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